Has Aramco become the world's most valuable company?

Aramco has become the most valuable company in the world thanks to its expensive shares. The company's share price has risen 10% against the initially issued price of shares.

Last week, the major oil company made $ 25.6 billion in sales of its shares. Remember that Aramco produces one-tenth of global crude oil.

The Saudi royal family is selling shares of Aramco to reduce the Saudi government's dependence on oil.

Proceeds from the sale of shares will be used to invest in other sectors, rather than energy.

The recent 10% increase in share price has brought Aramco's value to the market at $ 1.88 trillion.

With a value of 1.88 trillion, Aramco is easily the most valuable company in the world, however, this value is about two trillion less than what Saudi Arabia's Prince Mohammed bin Salman expects.

But Aramco's shares are still the most valuable shares worldwide. Their value is higher than that of the Chinese company Alibaba, which earned $ 25 billion from selling its shares in New York during 2014.

How did Aramco come to be?

Saudi Aramco's history began in 1933 when an agreement was reached between Saudi Arabia and the Standard Oil Company of California (Chevron).

The deal was related to the formation of a new company for the exploration of oil reserves and excavation of wells. Then between 1973 and 1980, Saudi Arabia gradually acquired the entire Aramco company.

Saudi Arabia has the largest oil reserves after Venezuela, according to the Energy Information Administration. With this, Saudi Arabia ranks second in oil production after the United States.

In the case of oil, Saudi Arabia has priority over other countries because extracting oil here is relatively cheap and easy.

It is the world's largest oil company, producing 10 million barrels a day and generating revenues of US $ 356,000 million.